The Research Of The Distribution Center Location Of A Chain Supermarket

In recent years, supermarket developed rapidly as the first choice for residential living, and distribution center has played an increasingly important role. A supermarket is a large retail enterprise, whose main business is supermarket with community fresh retail market. In recent years, with the growing of sales volume in A, the former distribution center cannot meet the supply demand for all the retail store. The distribution method changed from direct deliver from distribution center to the combination of direct deliver and supplier deliver, which increased distribution cost, decreased inventory turnover and harmed the customer service. To solve the problems mentioned above, this paper proposes a new distribution location for A using scientific location method and changed the supplier deliver to all distribution deliver, following the step of proposing, analysis and solving problems.Firstly, this paper predicts the demand for each stores in 2020 for A based on historical demand data. The data analysis is achieved by using the curve fitting and variance analysis function of SPSS. Then, the main suppliers are selected to be the target subject form the existing suppliers in A and the demands of the suppliers from all the stores are also predicted in this stage. Next, this paper determines the alternatives of distribution centers according to the analysis of geographic location, transportation and fixed cost, as well as the suggestion from managers of A.Based on all the data, this paper formed the new distribution center location model aimed at the lowest sum of the cost from supplier to distribution centers and from the centers to the retail stores, and applying Lingo to solve the model by bringing the real data. The model reasonably dispenses the demand from centers to each stores with the consideration of the interaction between old and new facilitiesLastly, the effect analysis is conducted from three aspects, total deliver cost, inventory turnover of each store and promptness rate. In 2020, compared to not establishing new distribution centers, the total distribution cost will decrease 2.685 million yuan, the inventory turnover will increase 4.45 averagely, and the promptness rate will also increase 1.27% in average base each year. As a result, the operation effectiveness of A will be increased dramatically.